Upon selection as a successful candidate, and as a condition to the receipt of any annual payment, the recipients shall execute a written agreement with the corporation, which agreement shall set forth the recipient's obligations to practice medicine in a shortage area designated pursuant to Education Law, section 605(9)(a)(3), and in accordance with these rules. Such agreement shall also provide for the recipient to repay any funds received and such other amounts that may be due as provided by law in the event he or she shall fail or refuse to complete the service obligation.

To receive an annual payment each recipient shall submit a complete application for such payment to the corporation. Such application shall be in such form as required by the president and shall include but not be limited to the name, social security number, home and business address of the recipient, the name of the lender of each eligible loan, the original loan amount, the school and course attended at the time such loan was made, the repayment schedule for such loan and the number and amount of any annual payments received under this section.

Upon acceptance of a recipient's payment application and the corporation's assurance that the recipient has complied with any required, prior service obligation hereunder, the corporation shall make the annual award payment to the recipient. The period of service associated with such payment shall commence following receipt of such payment. Disbursement of the second annual payment shall be dependent upon successful completion of the first year's service.

Annually, commencing with the calendar year in which a recipient begins to perform his or her service requirement at such time and in such form as the president shall prescribe, a recipient shall report to the corporation regarding the performance of the service requirement. This report shall be separate from the annual payment application.